State Bank of India, the country’s largest lender, provides two types of savings accounts for minors: Pehla Kadam and Pehli Udaan.
Pehla Kadam account can be opened in the name of a person below 18 years of age.
Pehli Udaan account is meant for those are above 10 years of age.
As per SBI’s corporate website – sbi.co.in. SBI’s Pehla Kadam and Pehli Udaan account holders are not required to comply with the bank’s rules on monthly average balance (MAB), which are applicable on its regular savings accounts.
The important details of these accounts are –
Eligibility and mode of operation
Pehla Kadam: Minor of any age can open this account but it has to be jointly opened with the parent or guardian.
Pehli Udaan: This account can be opened by a minor above the age of 10 years who can sign uniformly. This account has to be opened in the sole name of the minor, according to the SBI website.
Pehla Kadam: Account holder’s photo embossed ATM-cum-debit card with withdrawal/POS limit of Rs. 5,000 will be issued in the name of the minor and guardian, noted SBI.
Pehli Udaan: Account holder’s photo embossed ATM-cum-debit card with withdrawal/POS limit of Rs. 5,000 will be issued in the name of the minor.
Internet & Mobile banking
Internet banking: SBI offers both the accounts a per day transaction limit of Rs. 5,000. One can make bill payments, inter-bank funds transfer (NEFT only), and get demand drafts from these accounts.
Mobile banking: SBI offers both the accounts have a transaction limit of Rs. 2,000 per day. One can make bill payments, top-ups using the facility.
Cheque book facility
Pehla Kadam: SBI issues personalised cheque book with 10 cheque leaves are the guardian in the name of minor under guardian.
Pehli Udaan: SBI issues personalised chequebook with 10 cheque leaves if the minor can sign uniformly.
Interest rate and other features
The interest rate on Pehla Kadam and Pehli Udaan is similar to savings bank account. The bank offers an interest rate of 3.50 per cent per annum. Nomination facility is also available with SBI’s Pehla Kadam and Pehli Udaan accounts.